Paper imports in India double over five years, cross 2M tonne mark in FY25

INDIA – Paper imports into India have doubled over the past five years, hitting a record 2.05 million tonnes in FY25, up from 1.08 million tonnes in FY21, according to the latest data from the Department of Commerce, Government of India.

This steep rise in imports poses a growing challenge for India’s domestic paper industry, threatening future growth and deterring investment in capacity expansion.

The Indian Paper Manufacturers Association (IPMA) has voiced serious concerns, particularly about a 33% increase in paper and paperboard imports from China in FY25 alone.

China now accounts for over a quarter of India’s total paper imports, with the total import value reaching nearly INR 15,000 crore (US$1.81bn).

Mr. Pawan Agarwal, President of IPMA, emphasized the severity of the issue, “The relentless surge in paper imports is a matter of grave concern for the domestic paper industry, which has invested substantially in capacity building and sustainability initiatives.”

He added that the influx of low-cost imports, especially from countries like China, is undermining the competitiveness of Indian manufacturers, resulting in the underutilization of installed production capacity.

Small and medium-sized paper mills have been particularly hard hit. According to the Department for Promotion of Industry and Internal Trade (DPIIT), out of more than 900 paper mills in India, only 553 are currently operational.

“This is a serious setback to the sector, which has traditionally supported a large number of rural and small-scale livelihoods,” Agarwal noted.

Over the 14-year period since FY11, paper and paperboard imports into India have grown at a compound annual growth rate (CAGR) of over 10%, making it one of the fastest-growing import categories among major commodities.

This trajectory, if left unchecked, could have broader implications for employment, rural livelihoods, and the circular economy built around paper recycling.

IPMA continues to call for urgent policy action to correct these structural imbalances. The association has urged the government to enforce stricter quality control standards, review trade agreements that allow duty-free or low-duty access for imported paper, and ensure a level playing field for domestic producers.

“The domestic paper industry has a strong manufacturing base and is deeply integrated with India’s farm sector. It plays a key role in supporting the circular economy and sustainability goals,” said Mr. Rohit Pandit, Secretary General of IPMA.

“However, the unprecedented rise in imports threatens to derail this progress.”

IPMA reiterated its commitment to working closely with the government and stakeholders to develop a balanced approach that supports domestic production while meeting the country’s rising demand for paper.

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